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Report Date : |
05.01.2013 |
IDENTIFICATION DETAILS
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Name : |
MARICO MIDDLE EAST FZE |
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Registered Office : |
LOB 15326 Sheikh Zayed Road Jebel Ali Free Zone PO Box 50394 Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
15.11.2005 |
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Legal Form : |
Free Zone Establishment - FZE |
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Line of Business : |
Distributors of beauty and personal care products, health foods, medical equipment, cosmetics and soap. |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
UAE |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
UAE - ECONOMIC OVERVIEW
The UAE has an open economy with a high per capita income
and a sizable annual trade surplus. Successful efforts at economic
diversification have reduced the portion of GDP based on oil and gas output to
25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE has
undergone a profound transformation from an impoverished region of small desert
principalities to a modern state with a high standard of living. The government
has increased spending on job creation and infrastructure expansion and is
opening up utilities to greater private sector involvement. In April 2004, the
UAE signed a Trade and Investment Framework Agreement with Washington and in
November 2004 agreed to undertake negotiations toward a Free Trade Agreement
with the US, however, those talks have not moved forward. The country's Free
Trade Zones - offering 100% foreign ownership and zero taxes - are helping to
attract foreign investors. The global financial crisis, tight international
credit, and deflated asset prices constricted the economy in 2009. UAE
authorities tried to blunt the crisis by increasing spending and boosting
liquidity in the banking sector. The crisis hit Dubai hardest, as it was
heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to
meet its debt obligations, prompting global concern about its solvency. The UAE
Central Bank and Abu Dhabi-based banks bought the largest shares. In December
2009 Dubai received an additional $10 billion loan from the emirate of Abu
Dhabi. The economy is expected to continue a slow rebound. Dependence on oil, a
large expatriate workforce, and growing inflation pressures are significant
long-term challenges. The UAE''s strategic plan for the next few years focuses
on diversification and creating more opportunities for nationals through
improved education and increased private sector employment.
Source
: CIA
Company Name : MARICO MIDDLE EAST FZE
Country of Origin : Dubai, United Arab Emirates
Legal Form : Free Zone Establishment - FZE
Registration Date : 15th November 2005
Trade Licence Number : 6581
Chamber Membership Number : 110385
Issued Capital : UAE Dh 22,000,000
Paid up Capital : UAE Dh 22,000,000
Total Workforce : 25
Activities : Distributors of beauty and personal care products, health foods, medical equipment, cosmetics and soap.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
MARICO MIDDLE EAST FZE
Location : LOB 15326
Street : Sheikh Zayed Road
Area : Jebel Ali
Free Zone
PO Box : 50394
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 3965416
Facsimile : (971-4)
3973725
Email : milgulf@marico.ae
Subject operates from a medium sized suite of offices that are rented
and located in the Jebel Ali Free Zone, Dubai.
Name Nationality Position
· Prashant Vishnu
Vatkar Indian Managing
Director
· Vijay Subramaniam Indian Director
· Sudhir Rehgarh Indian Director
· Pawan Agrawal Indian Director
· Debashish Neogi Indian Director
· Aditya Shome Indian Director
Date of
Establishment : 15th
November 2005
Legal Form : Free Zone
Establishment - FZE
Trade Licence No. : 6581 (Expires 26/08/2013)
Chamber Member No. : 110385
Issued Capital : UAE Dh 22,000,000
Paid up Capital : UAE Dh 22,000,000
· Marico Ltd 100%
India
Activities: Engaged in the import and distribution of beauty and personal care
products, health foods, medical
equipment, cosmetics and soap.
Import Countries: Europe and the Far East.
Subject has a workforce of 25 employees.
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh)
Balance Sheet 31/03/12 31/03/11 31/03/12 31/03/11
UAE
Dh UAE Dh RS Crore RS Crore
NON–CURRENT ASSETS
Property, plant and equipment 525,276 701,198
0.73 0.85
Investments in subsidiaries 32,001,823 32,001,823
44.33 38.85
Non–current financial assets 59,376,267 65,795,642
82.24 79.87
91,903,366 98,498,663 127.30
119.57
CURRENT ASSETS
Trade and other receivables 46,272,336 30,798,072
64.09 37.39
Cash and cash equivalents 604,474 1,398,555
0.84 1.70
46,876,810 32,196,627 64.93
39.08
TOTAL ASSETS 138,780,176
130,695,290 192.22
158.65
CURRENT LIABILITIES
Bank borrowings 82,505,075 78,570,806
114.28 95.38
Trade and other payables 32,403,053 28,239,616
44.88 34.28
114,908,128 106,810,422 159.16
129.66
NON–CURRENT LIABILITIES
Provision for staff end–of–service gratuity 379,394 436,734 0.53 0.53
SHAREHOLDE’S FUNDS
Share capital 22,000,000 22,000,000
30.47 26.71
Accumulated losses (1,733,589) (1,024,511)
(2.40) (1.24)
Equity funds 20,266,411 20,975,489
28.07 25.46
Loan from parent company 3,226,243 2,472,645
4.47 3.00
23,492,654 23,448,134 32.54
28.46
TOTAL EQUITY AND
LIABILITIES 138,780,176
130,695,290 192.22
158.65
Statement of Income
REVENUE 151,012,513
99,808,788 209.17
121.16
Purchases of inventory (95,185,675) (61,092,772)
(131.84) (74.16)
GROSS PROFIT 55,826,838
38,716,016 77.33
47.00
Other operating income 128,533 58,901
0.18 0.07
Staff costs (9,421,294) (7,130,255)
(13.05) (8.66)
Depreciation (128,728) (121,759)
(0.18) (0.15)
Other operating expenses (46,531,484) (43,338,562)
(64.45) (52.61)
LOSS FROM OPERATING ACTIVITIES (126,135) (11,815,659) (0.17) (14.34)
Interest income 1,403,851 1,648,192
1.94 2.00
Finance costs (1,986,794) (1,820,643)
(2.75) (2.21)
LOSS FOR THE YEAR (709,078) (11,988,110) (0.98)
(14.55)
Local sources consider subject’s financial condition to be Fair.
·
Standard Chartered Bank
Khalid Bin Waleed
Street
PO Box: 999
Dubai
Tel: (971-4)
2520455
No complaints regarding subject’s payments have been reported.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.84 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.